Who is liable for fault on my Audi A4?

I bought an Audi A4 on 02/11/2011 from Midlands Motors in Birmingham.
There was a 2 year external warranty offered.

Approx 1 month & 400 miles ago the ABS & the Traction Control lights came on. I rang the warranty company immediately & they told me that I needed to go to a garage to get the fault diagnosed which I did.

There was no instruction not to drive the car & the garage confirmed that driving has not caused any additional damage.

The car was booked in a couple of days ago with Auto Trans in Gloucester (the delay because I needed to arrange a hire car & there appeared to be no urgency) The warranty Co ( Customer protect ) have refused to pay out on the grounds that the car should not have been driven. The repairs will be around £1600. Cover was for up to £2000.

Auto Trans tell me that it is common with this insurer to refuse virtually any claim. Do I have any rights against the warranty co or the garage that sold me the car?

It is a 2005 Audi A4 Convertible with just over 100,000 miles & I paid just under £6000. Full up to date Audi main dealer service history.

Asked on 19 May 2012 by NickPilkington

Answered by Honest John
The dealer you bought the car from is liable. Law here: www.honestjohn.co.uk/faq/consumer-rights/ He has attempted to pass his liability on to a warranty insurer by selling you this warranty. But that does not absolve him from selling you both a car "not of satisfactory quality" and a warranty "not of satisfactory quality". Give him the chance to commission and pay for the work. if he refuses, have the work done, then sue him for the cost using the small claims track of the county court. If he refuses to pay and puts himself in contempt of court, you then have a further problem, but he has a bigger one because he will not then be able to get credit from any lender anywhere.
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